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I say the same, make an offer. Maybe they have not had any offers or maybe they have had similar offers and did not want to go that low. You may want to consult an attorney in your area or do a search to see how much similar homes have sold for.
1. There is no such thing as a "lowball offer." There are just overly emotional sellers.
2. No offer is ever "insulting." There are just overly emotional sellers.
I would temper that input with a mention that you should not put them out of the house 5 weekends in a row with lengthy visits, dragging the in-laws and outlaws through, lots of questions, criticisms of the property decor, condition, etc.
Since you are dealing with a budget constraint, you just write your best offer, make a comment that you are really at the top of what you can do, and if you and the seller can find a deal at that, great. If not, "Thanks for your consideration."
If this approach causes emotional stress for the sellers, they just need professional counseling or an agent who can prepare them better for market realities.
There is a number that is correct but you will really have to study. Materials and labor costs can go up monthly. Include in your study construction costs in your area. Things that would eventually need to be replaced would not be rated at full value. Do not place much value in the banks or the agents determination of value. You should include all data in your offer as most have no idea.
When a house has been on the market a long time, there might have been some offers that were accepted but fell through due to mortgage problems and/or other problems. Therefore, the more problem-free your offer, the more likely you can get a very good price. Do you need a mortgage? If so, you need to somehow absolutely convince the seller you can get one. And look at all the other contingencies and ask yourself if you really need them. Make it clear in your offer that it doesn't have a lot of contingencies and that you can close right away. You can sometimes get a surprisingly good deal that way. Simply because the seller might be getting very tired of having the house on the market.
1. There is no such thing as a "lowball offer." There are just overly emotional sellers.
2. No offer is ever "insulting." There are just overly emotional sellers.
I would temper that input with a mention that you should not put them out of the house 5 weekends in a row with lengthy visits, dragging the in-laws and outlaws through, lots of questions, criticisms of the property decor, condition, etc.
Since you are dealing with a budget constraint, you just write your best offer, make a comment that you are really at the top of what you can do, and if you and the seller can find a deal at that, great. If not, "Thanks for your consideration."
If this approach causes emotional stress for the sellers, they just need professional counseling or an agent who can prepare them better for market realities.
Absolutely! The often stated concern that a "lowball" offer will insult the owner is a silly attempt to turn a business transaction into a personal issue. Selling/buying a house is a negotiation, not a prom.
Look at it from the seller's perspective: My house has been on the market for considerable time with no serious offers -- near my price or other. A potential buyer comes along and likes the house well enough to make an offer, but, it's 20-percent below my asking price. What should I do: (1) Be offended and pout because the buyer doesn't see the same value I do; (2) Get angry and ignore the offer --- and rudely tell the realtor to go fly a kite; or (3) make a counter offer and tell the 'buyer' why the value is justified in the context of current comps, upgrades, etc.
By the same token, if I, as a buyer, want to make an offer 20-percent below the asking price, should I (1) Tell the seller I can't afford more and they can either take it or leave it; (2) Make an offer 25-30-percent below asking in the hope they will counter closer to the 20-percent less I'm willing to pay; or (3) Submit the offer with a list of specific reasons I believe the house is worth what I'm offering, instead of what they are asking (comps, needed repairs, other problems).
Obviously, #3 in both cases is sensible, rational and has the best chance of succeeding; while #1 and #2 may make one feel vindicated, but probably have very little chance of success.
1. There is no such thing as a "lowball offer." There are just overly emotional sellers.
2. No offer is ever "insulting." There are just overly emotional sellers.
I would temper that input with a mention that you should not put them out of the house 5 weekends in a row with lengthy visits, dragging the in-laws and outlaws through, lots of questions, criticisms of the property decor, condition, etc.
Since you are dealing with a budget constraint, you just write your best offer, make a comment that you are really at the top of what you can do, and if you and the seller can find a deal at that, great. If not, "Thanks for your consideration."
If this approach causes emotional stress for the sellers, they just need professional counseling or an agent who can prepare them better for market realities.
Exactly! I don't get why people call it lowball offer. Or they'll accept, not accept or meet you somewhere in the price. Simple as that. Sellers should not get upset about these kind of offers. We doing business, not dating.
I have been involved in real estate for nearly three decades and if anybody does not acknowledge that there is a HUGE psychological component to both the seller accepting or rejecting an offer AND the decision of the potential buyer to make an offer such a person is showing their lack of grounding in reality.
Frankly I believe there is a LOT in common with purchase / selling of other costly items, especially motor vehicles. Whether you are attempting to buy a new car, buy a used vehicle or get a trade-in / sale of your used car you absolutely must acknowledge that there is more than just a logical / rational process involved.
There are people that will claim to be immune to these psychological triggers but believe me if those folks look around their laundry or bathrooms and try to explain why they have the products they do (from detergent and fabric softener to toothbrushes, floss, toothpaste,shampoo,hair conditioners, deodorants, razors, etc) it becomes very clear that they've already bought into a huge amount marketing that is clearly based more on psychology than rational decisions...
Great advice given to you.
Make your best offer and see what happens.
Some owners aren't realists and may never sell, their egos hurt them.
It's easy to find comps online for similar properties that have sold recently. Those are known as "facts" and if you pay too much you'll never get that money back.
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Absolutely! The often stated concern that a "lowball" offer will insult the owner is a silly attempt to turn a business transaction into a personal issue. Selling/buying a house is a negotiation, not a prom.
